Different Methods of Job Evaluation

by K.A. Francis, Demand Media

Assigning a hierarchy and job value to a position takes a lot of thought.

job of a brain image by 26kot from <a href='http://www.fotolia.com'>Fotolia.com</a>

Setting the hierarchy for positions within an organization is a necessity. Each business has administrative, management and clerical positions, and to match the best job candidate to a position, the job has to be evaluated using a set of skill factors. The method used to do this is referred to as job evaluation. There are several methods an organization can use to determine the hierarchy and pay scale for its positions, but an organization needs to remain as objective as possible when setting up hierarchies and assigning a value to a position.

Step 1

Establish the number of positions in the organization. The number of positions can help determine the appropriate job evaluation method, as some methods are cumbersome for a large number of positions, and others are too complex for a smaller number of positions. The number of positions that could be created in the future should also be considered.

Step 2

Choose a method of evaluation. A company with a small amount of positions could use the ranking method. Ranking compares each position to another based on the overall ranking assigned to the position by the organization. For organizations with numerous positions, the factor comparison method could be used. With factor comparison, a set of skills are assigned a value, a list of common jobs is created and a pay scale is created by assigning a value to each job based on the skill value. A third method, the point method, identifies a set of skills and subsections of each skill and assigns point values to each subset skill. For each position in the company, the job requirements are compared with the subset skills and a numerical value is computed for the position.

Complete the job evaluations using the chosen method--based on the number of positions to be evaluated, the information to be used for the evaluation and anticipated additions of future job positions. It is acceptable to use more than one evaluation method in an organization, especially if the organization has several branches that function under one company. For example, a health care provider might have a sales department, a customer service department and an administrative department, which all answer to a managerial department.

Tip

Although job evaluations are important in regards to assigning pay ranges, the information used to complete the evaluations is subjective. It is important that the skill sets used in job evaluations is a specific as possible.

Warning

The downside to job evaluations is their possible gender and minority bias. For example, administrative assistant and clerical positions carry a female position stereotype, and therefore these jobs run the risk of being rated lower than a job that is considered male dominated, such as management and supervisory positions.

About the Author

K.A. Francis is a freelance writer with over 15 years experience, and a small business consultant and jewelry designer. She holds a Bachelor of Arts in English and business administration and a Master of Arts. She has written for "The Einkwell," "Windsor Parent," MomsOnline, Writer's Stew, Lighthouse Venture Group and others. Her jewelry design company, KAF Creations, has been in operation since 1998.

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